The VAT Reverse Charge
Originally happening in October 2019, it was postponed until October 2020 to let businesses concentrate on Brexit, but if you work in construction this is a major change for you and affects any work you complete under the Construction Industry Scheme from 1 March 2021.
The charge applies to standard and reduced-rate VAT services:
- For individuals or businesses who are VAT registered in the UK
- Reported within CIS
HMRC have produced some handy guides that can be found at https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services and we would recommend that if this affects you, you should watch the webinar from HMRC. The link is under section 5 of the guidance from HMRC (link above).
Personal Tax Allowance
By now you will know that the personal tax allowance for most people is £12,500 for the 2020/21 tax year and normally the government would have announced the increase for 2021/22 in the Autumn Budget but there wasn’t one.
It is anticipated that it will increase 0.5% in line with the CPI figure, making it £12,570 but we will wait for the budget in March before we publish the new allowance.
Capital Tax Changes for Self-Assessment Individuals
HMRC customers have until 31 January 2021 to declare any profit made from selling a UK residential property, which was not their main home, during the 2019 to 2020 financial year, and pay the Capital Gains Tax due.
Since 6 April 2020 there have been changes to how customers declare and pay Capital Gains Tax. They should use the online service to inform HMRC and pay any tax due within 30 days of completing the sale.
More information can be found – https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax
If you require any assistance with any of the matters above please do not hesitate to CONTACT US, our experienced team would be happy to discuss your requirements.